questions and any property stories at propertyman@foxnews.com. i'm bob massi, the property man. i'll see you next week. [ woman vocalizing ] thanks for. >> announcer: from fox business headquarters in new york city, a new "wall street week." gary: welcome to "wall street week." i'm gary kaminsky. dagen: i'm dagen mcdowell. this was a week where wall street and washington were closely intertwined. the healthcare saga coming to a close friday in the house of representatives. the president pledge to do tax reform next. the stock market had a losing week in large part because of the healthcare turmoil. the architect of the president's

affordable care act zeke man well will be on our show. devin nunes disclosed donald trump's transition team may have been under surveillance. chuck schumer promising a filibuster for supreme court mom knee neil gorsuch despite what was a strong performance in his hearing. schumer is urging his colleagues to vote no with him. a despicable terror attack in london. four people killed and 40 injured after a terrorist mowed down the people on the westminster bridge. the islamic state claiming responsibility for the attack.

att & t and verizon are pulling their ads from google and youtube over concerns the ads are returning alongside extremist content. >> it's important. what we do is match ads and the content. but because we source the ads from everywhere, every once in a while, someone gets underneath algorithm and they put in something that doesn't match. we had to tighten our policies and increase our manual review time. gary: . paul, you points out as we come to the close of q1. we have gone a year without a correction in the market. paul: i think we have gone the

ahead of ourselves if you look at the p.e., it's over 17. average five years is 15. so i think it would be healthy to have a pullback and a rest. but the point that needs to be made for investors is that the under lying fundamentals of this economy are quite good. you look at earnings, they are quite good, and projected earnings are very, very good. so i think overall this year will be an upward trend in the stock market. but it wouldn't be a bad thing i think to have a pullback and get back, revert to mean. dagen: you don't think the stocks -- >> definitely higher than the long-term average. but if you look at the chart you

are either way below it or way above it. there is less risk in large cap u.s. stocks now. we have the threenest balance sheets we have ever had. we are not in that situation now. i would love a correction to be able to buy cheaper but i don't know if we'll get it. gary: paul, when it's actually happening, investors panic and get worried. we get an 8% pullback, what do you want to tell the viewers they should be thinking about? paul: i think warren buffet said it best recently. thmarket basally benefits people with patience. the people with patience win and the people without patience lose. there is one other thing

happening in this market. i don't know that people understand this. i mean most people, especially the people like me who live in washington, d.c., we believe regulatory reform is going to happen. we believe that tax reform is going to happen. we believe there will be an infrastructure bill with more democrats voting for it than republicans, when that happens, and i think it's a high probability, we'll have earnings that will go through the roof. even if you cut the corporate tax rate, the money saved goes into earnings. we have been valuing on a pave is what we know now, but we are going to revalue when all this takes place. if we get higher gdp growth the p.e.s will be different.

gary: i read a piece in the financial times friday morning there has been a billion net going out of active funds daily for the last month into index funds. that worries me longer term, how much money is being indexed. is that something you are concerned about and something you advise investors to do? >> it's very, very hard for active managers to outperform the benchmark. if you are a retail investor and you are dog asset allocation, going into the index you save on costs. so if you miss out on sort of outperformance, over a couple years you have may be saving 50 or 100 basis points. i'm not worried about it. the more that goes to indexing, the for inefficient is will be ignored. asset allocation generated by

managers are so small, and this is a that pral progression. the pendulum went to the other side and in the long term this will bring that back. gary: here is a look at some of the biggest market events that could impact your wallet. home sales and consumer sentiment. a few notable earnings are due out. lulu lemon and blackberry are names to watch. more twists and turns expected on the healthcare law fight and the battle over supreme court mom knee neil gorsuch will come to a made. "wall street week" will be right back. >> announcer: the battle over obamacare. one of the key architects of

obamacare is how's it going? -hi. today we're gonna be companghe roll-formed steel bed of the chevy silverado to the aluminum bed of this competitor's truck. awesome. let's see how the aluminum bed of this truck held up. wooooow!! -holy moly. that's a good size puncture. you hear 'aluminum' now you're gonna go 'ew'. let's check out the silverado steel bed. wow. you have a couple of dents. i'd expect more dents. make a strong decision. find your tag and get 15% below msrp on select 2017 silverado 1500 crew cabs in stock. find new roads at your local chevy dealer.

[♪] gary: no matter what happens with the healthcare law, the business of healthcare is huge. it comprises 0 -- comprises 20% of our gross domestic product. dagen: zeke emanuel one of the architects of obamacare. let's stipulate both have issues in a country of 330 million people and there is no one size fits all. we have an aging population and costs need to be reined in. if you had a magic wand, what would your solution be? >

zeke: i have been arguing for a decade that healthcare costs are a big, big concern. and we have to bend the cost curve and get healthcare inflation closer to the growth of domestic product. there are a number of policies. the top of my list is payment change. we need to pay doctors and hospitals differently. we pay them when people are sick. we don't pay them to keep people healthy. we need what the administration called alternative payment models. we need to get off paying doctors fee for service and pay them differently. per person, keep people healthy, you make more money. bundle payment. we'll give you one payment for that hip replacement. you figure how to use the money. and we'll monitor the quality.

we need to bring drug costs down. drug costs are 17% of all healthcare costs. we need to bring the cost of drugs down. i'm heartened that president trump want to do that and is very, very engaged on that. those are two of the things we could do to bring healthcare costs under control. 84% of all healthcare spending is about chronic illness. it's diabetes, heart disease, asthma. we need to be better about keeping those people healthy and not allow them to get sick and need an amputation if they have diabetes, and keeping them out of the hospital. that will be the long-term key to bringing our costs under control.

gary: no insurance works unless you get enough people in the pool. so whether it's automobile insurance or property and casualty insurance. if you reflect back on the affordable care act. is one of the major problems getting enough healthy people into the program? what's the solution there? >> you are right. for young people sort of resistant to buying insurance, they think they are mortal. but also, you know, they face healthcare costs only under very limited circumstances. do they have severe trauma, do they get hit by a car or fall off a motorcycle? do they get a dreaded disease like cancer? or do they have a baby that costs about $15,000 to deliver? those are the three circumstances in which they need health insurance and persuading them to buy something is hard. we adopted the individual

mandate requiring people to get health insurance or having a penalty. another approach which i think is much better and one that we can get bipartisan agreement on is called auto even roment. we'll give you for the basic tax credit, subsidy, voucher. we'll give you a basic healthcare plan, then you can add up on it if you are a young person. i think that has a lot of appeal and it's something we can all rally around, and that gets everyone in the system. we use that in medicare for the hospital benefit. we note republican -- we know the continuous coverage idea of the republicans doesn't work. they say i'll pay the 30% penalty because insurance will

be worth tens of thousands of dollars for me if i get sick. so the republican approach hasn't worked. but i would go to auto enrollment if you asked me now. dagen: you talk about 80% of spending is on chronic illnesses. i think we all want people to have decision making about their healthcare. but when you have other people essentially helping support those who haven't taken care of themselves, how do you even deal with that? zeke: part of the issue, and there are a lot of places around the country who have done a tremendously good job caring for these with chronic illness, keeping them out of the hospital, making sure they are taking their medication and changing their diet. the key to that is having chronic care coordinators co-located with the doctor.

it's not about passing the bill in washington,t's the nuts a bolts of care, even ganging patients, not just caring for patients when they come into the doctor's office or hospital. remember, a lot of people have health problems that are not necessarily things they can easily control. you have high cholesterol, it may not be yours to control, it may be much more genetic. you have high blood pressure, and being on a medication every day for the rest of your life is a hard thing. it gets people depressed and makes it harder for them to be engaged in regular activities. the healthcare system needs to support them so they can change their lifestyle. that's not so easy for us. i don't know what your new year's resolution is, but i can bet a lot of money you violated it already.

almost all of us do. we realize how difficult lifestyle changes are. part of what the healthcare system has to do is stop just taking care of people when they show up in the emergency room and start helping people make those lifestyle changes. dagen: i went vegan so far this year. zeke: i'm not so sure it's a wise idea to eat vegan, but all of us realize how heard it is to make these lifestyle choices and changes. quitting smoking is hard. getting on a scale, measuring yourself and changing your diuretic is very hard. so i have given you one example. another example, we know people with chronic illness frequently have depression and anxiety associated with those chronic

illnesses. if we treat the mental health of these people are mental illness we can bring costs down again. dagen: you are talking about exciting things. don't goat anywhere, we have a lot more to talk about when "wall street week" comes back. >> announcer: zeke emanuel says it's time to get rid of the individual mandate and preeven

gary: zeke emanuel is back with us now. you talked about auto enrollment

as one of the ways to get people into the system. how does auto enrollment work and why is that a better solution than the sort of mandatory coverage that did not work. zeke: we have this basic subsidy, tax credit for people to help them buy insurance. if someone does haven't insurance through their employer or medicaid and medicare, we would auto enroll them into a basic plan. basically their tax credit or voucher or subsidy would be used to buy that's basic plan. that's the idea. ven e options, we already it's for medicare part a, we know we can do it it's not administratively simple, but it's a way of getting the 18 million american citizens who

haven't got insurance into the system even if they are reef is and the to buying insurance. dagen: don't you think there would be major pushback from people on the right about government essentially -- it's another way of forcing people to buy health insurance. zeke: are we forcing seniors to buy medicare part a? we force them to pay taxes when they are work then we give them medicare part a. that's something we long used in this country and it's something -- maybe it people caucus couldn't agree to it, but i think there are a lot of rough karnes and people from the country who would agree to it. my view is this is bipartisan. it doesn't mean in the fringe on the left or the right would agree. but let's look at the middle. that's where most americans are. remember, you know, we don't

have that. the question is, as you put it at the start of the interview, how are we going to get a large number of people to be in the insurance pool. if we don't have a large number of people in the insurance pool, it's not going to work. the question is, back to you, if you department like auto enrollment, the republican temperature coverage disincentivizes people from buying insurance. gary: i have seen wall street reports that say healthcare will be 25% of gdp. so this is ultimately a long-term investing program. where do you see the growth in terms of how we are going to pay for it. which of the areas of healthcare that are growing. >> so let's have full disclose our.

if i work with a venture capital funds, and we do invest. i would say our main goal is places trying to improve quality and reduce costs. we have investments in primary care and mental healthcare and palliative and end of life care. those are three areas that will continue to grow. i don't agree with the people predicting it will be 25%. right now i think america is focused on trying to get a high-value offed system. cost control is one of the major areas. when the united states puts its mind to improving something we usually succeed and succeed bully. i like to say when i was growing up the great wine of america was gallo, now we are the best in the world with california and american wine.

dagen: that does it for us on "wall street week." thanks for watching. we'll see you next time. dear predictable, there's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one. i know this is sudden, but they say: if you love something... set it free. see you around, giulia ♪ i just had to push one button wto join.s thing is crazy. it's like i'm in the office with you, even though i'm here. it's almost like the virtual reality of business communications. no, it's reality.

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>> announcer: from fox business headquarters in new york city, a new "wall street week." gary: welcome to "wall street week." i'm gary kaminsky. dagen: i'm dagen mcdowell. this was a week where wall street and washington were closely intertwined. the healthcare saga coming to a close friday in the house of representatives. the president pledge to do tax reform next. the stock market had a losing week in large part because of the healthcare turmoil. the architect of the president's